Woes Continue For Regis Corporation
Regis Corporation reported weak financials on Thursday, continuing a string of poor quarterly performances.
The Edina-based global hair salon giant said revenues for the second quarter of fiscal 2015 declined $12.5 million, or 2.7 percent, to about $456 million. Earnings per share was a loss of 16 cents, a loss much larger than the 3 cents per share the same time last year.
Zacks Investment research says the company has missed earnings expectations during six of the last seven quarters previous to this report.
Regis has been attempting to stop the bleeding, and it saw signs of progress last quarter when same-store sales rose 2.8 percent, according to Zacks. But those numbers couldn’t hold up, declining 0.3 percent during the second quarter.
Still, CEO Dan Hanrahan sees the quarter as, if not positive, a sign of progress.
“Second quarter results provide further signs of gaining traction where we have strong leaders executing our strategy,” he said in a statement.
The company cited several ways it is attempting to improve its outlook, including improved “asset protection,” leadership and talent pilot programs and technical education for stylists.
“We are gaining measurable traction in terms of the breadth and depth of improved performance,” Hanrahan said. But, he then cautioned, “keep in mind this turnaround impact 7,000 salons and more than 40,000 employees. We have significant work ahead of us before we are executing consistently across the entire portfolio.”
Its stock price fell on the news of continued poor performance, down about 7 percent to $15.00 when the markets opened. By midday Thursday, the losses stemmed slightly, with shares trading down about 4 percent to $15.43.